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AIR CANADA CELEBRATES TANGO SERVICE TO ONE MILLION CUSTOMERS WITH UNLIMITED COMPLEMENTARY FLIGHTS FOR A YEAR FOR LUCKY TANGO CUSTOMER

With 93 flights today to destinations coast to coast, Tango - Air Canada’ s low fare, high value no frills service - reached the milestone of serving one million customers in just over seven months. Tango celebrated this important milestone with a customer draw for a full year of unlimited complimentary flights for two anywhere in the Tango network.

Tango flight #6051 from Toronto to Calgary was randomly chosen from today’s flights and Calgarian Marcel Schwalm was then randomly drawn from the flight’s passenger list just prior to boarding in Tango’s new home at Terminal 3 at Lester B. Pearson International Airport in Toronto. Mr. Schwalm, 31 years old and a frequent Tango flier for both business and pleasure, with family members living across Canada, will enjoy a full year of unlimited free flights on Tango’s extensive network for both himself and a companion.

"The advent of having served a million Tango customers not only illustrates Tango’s popularity but also confirms the growing demand for simple, high value, low fare services provided by Air Canada," said Ben Smith, Managing Director, Tango, before awarding Mr. Schwalm his prize.

"Our first seven months has produced unprecedented online bookings on Tango’s customer friendly website, which keeps distribution costs down and is a contributing factor to our low fares," Mr. Smith added. "We will continue to build upon customer confidence that travel on Tango means consistently low fares coupled with Air Canada’s reputation for stringent maintenance, uncompromising safety standards and professional, experienced flight crews," he concluded.

ZIP SERVICE TAKES TO THE SKIES SEPTEMBER 22, 2002

ZIP Seats on sale August 8; Broader start-up network serves more of Western Canada

CALGARY, ALBERTA, July 30, 2002 - ZIP Air Inc. (ZIP) today announced that it will officially take to the skies on September 22, 2002 with a network that will bring a new choice for low fare travel to more Western Canadian destinations sooner. Seats for the new low fare, high value air carrier will go on sale August 8, 2002.

ZIP'S NETWORK

ZIP will initiate operations with a total of 15 flights daily, completely replacing existing Air Canada flights on the following routes:

Calgary-Winnipeg: 5 frequencies each weekday with one-way fares starting as low as $119. Edmonton - Vancouver: 8 frequencies each weekday with one-way fares starting as low as $94. Edmonton-Winnipeg: 2 frequencies each weekday with one-way fares starting as low as $119.

Details about ZIP's broadened network as well as dates for e-ticket sales and first flights were announced in Calgary today in conjunction with the arrival of the first fully painted ZIP 737-200 aircraft in bright fuchsia livery.

"Since we announced ZIP in mid-April, all of our efforts have focused on developing a product that responds to growing marketplace demand for more options in low fare air travel," said Steve Smith, President and CEO, ZIP. "For the ZIP team, the arrival of our first aircraft at its home base is an exciting start to the official countdown to launch date on September 22.

"Our new broader network responds to the interest which ZIP has generated in communities throughout Western Canada. ZIP will now reach consumers looking for more low fare options between more Western Canadian destinations sooner than was originally announced with the Calgary-Vancouver start-up route. Consumers in Calgary, Edmonton, Vancouver and Winnipeg will be given the first opportunity to enjoy ZIP's low fare service with many additional benefits," he concluded.

In addition to online bookings, comfortable seating, ample storage and Express Check-in kiosks, ZIP offers unique benefits among low fare carriers: Convenient connections to the Air Canada worldwide network including check-in to final destination and seamless baggage transfers.

Mileage accumulation and redemption on Aeroplan®, ranked the World's Best Frequent Flyer Program by the official Airline Guide (OAG) International Survey of frequent flyers in 2002.

ZIP's start-up fleet will consist of six Boeing 737-200 aircraft, and will eventually grow to twenty 737-200s, all transferred from the existing Air Canada mainline fleet.

BUYING AND FLYING WITH ZIP

Effective August 8, 2002 customers will be able to book travel on ZIP online at 4321zip.com, through a toll-free call centre, at Destina.ca or through travel agents. Customers who have already booked on Air Canada for travel on or after September 22, 2002 will automatically have their bookings protected on ZIP. More information about ZIP's fares, schedules and booking procedures will be made available on or before August 8.

ZIP LAUNCH READINESS IN FULL SWING

Preparation of ZIP's Calgary headquarters continues on schedule. ZIP's six aircraft are being painted over the next several weeks; the newly painted aircraft in ZIP livery will operate on Air Canada routes from now until launch date.

Recruitment and training is ongoing.

Required Government licenses and Transport Canada approvals are proceeding on schedule. ZIP's domestic service is subject to Government Approval.

About ZIP:

ZIP (ZIP Air Inc.) is a wholly owned subsidiary of Air Canada that is designed to respond to a marketplace that is demanding more options in low fare, high value air service. ZIP will operate on primarily short haul routes, beginning September 22 with service between selected Western Canadian destinations and offering convenient connections to the Air Canada worldwide network. ZIP is headquartered in Calgary and will operate with an independent operating certificate, management team, and corporate identity. Further information about ZIP can be found at 4321zip.com.

They have a website at www.4321zip.com and they are hiring for ground and flight crews

"CanJet Doubles Flights at St. John's"! 31/07/2002

CanJet Airlines announced today that it will double the number of flights it currently operates at St. John’s, Newfoundland with the introduction of its Fall and Winter schedule on September 9th.

Julie Gossen, Executive Vice-President & Chief Operating Officer, said, “The response to CanJet service from our customers and our travel trade partners in the St. John’s marketplace has been exceptional since our initial flight on June 20th. We have been listening closely to the advice and feedback from the marketplace and I am pleased that we are able to respond in such a positive fashion.”.

Effective September 9th., CanJet Airlines will double its scheduled service in and out of St. John’s from nine to eighteen flights per week. The following are highlights of the new CanJet Fall & Winter schedule.

· 14 flights per week between St. John’s and Toronto via Halifax

· 4 flights per week between St. John’s and Toronto via Moncton

· 14 non-stop flights per week between St. John’s and Halifax

· 4 non-stop flights per week between St. John’s and Moncton with the implementation of this new route

· Same day service between St. John’s and Ottawa/Montreal

· Daily departures at 6:20 a.m.; 2:05 p.m. (4 days per week); and 4:40 p.m.

Ms. Gossen stated, “ The new St. John’s Fall and Winter schedule offers customers excellent time of day departures, same day service to the major centers in Atlantic and Central Canada plus warm, friendly service at low discount fares.” She went on to say that CanJet Airlines’ increase in flights at St. John’s this Fall & Winter will have a positive economic effect on the airport, the hotels, the restaurants and other businesses in the region.

Thanks goes to John Kelley for this picture of a Boeing 737-200 of CanJet.

WESTJET PROFITS ON THE UP 31 July 2002

No frills airline WestJet saw profits take off in the second quarter because it cut costs, increased capacity and expanded into Ontario.

In sharp contrast to other airlines, which are still struggling after the September 11 attacks, WestJet posted a 55 per cent rise in capacity and saw its sales and earnings grow rise 45 per cent each.

For the quarter ended June 30, Calgary-based WestJet reported a profit of C$12.3 million ($7.8 million), compared with earnings of C$8.5 million in the year-ago quarter.

"Despite growing competition in the Canadian skies, we continue to build on our base of loyal customers who choose to support Canada's low-fare airline," WestJet Chief Executive Clive Beddoe said.

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